Judge formally rejects ‘lenient’ mortgage fraud plea agreement

Wednesday

Feb 5, 2014 at 8:15 PMFeb 5, 2014 at 10:04 PM

By Lyda Longalyda.longa@news-jrnl.com

The federal judge who balked earlier this week at the plea deal a prosecutor offered to the accused ringleader of a multi-million dollar Volusia County mortgage fraud ring issued an order late Wednesday formally rejecting the guilty plea the suspect entered in court.In his five-page order, U.S. District Judge Roy B. Dalton Jr. called the deal offered to Jim Sotolongo by the U.S. Attorney’s Office “the lenient plea agreement.”On Tuesday morning Dalton questioned the plea agreement worked out between Assistant U.S. Attorney Tanya Davis Wilson and Sotolongo’s attorney John Bergendahl that included dismissing 12 of the 13 charges lodged against the 48-year-old suspect. The one charge Sotolongo would be convicted of — conspiring to defraud the United States — carries a maximum of five years in prison. As part of that deal, Sotolongo also would not be expected to be a government witness in the coming trial of two other accused members of the mortgage fraud ring. Those suspects include former real estate broker Ramara Garrett, who is Sotolongo’s live-in girlfriend, and title agent Stephanie Musselwhite.The initial charges against Sotolongo include one count of conspiracy to defraud the Unites States, 11 counts of bank fraud and one count of making false statements for the purpose of influencing a federally insured financial institution.Each of the 11 counts of bank fraud and the false statements charge carry a maximum penalty of 30 years in prison, Dalton wrote in his order.“Upon review, the Court concludes that it cannot accept the plea agreement between the Government and Sotolongo,” Dalton wrote. “Given the nature and scope of the conspiracy alleged, if the Court were to permit the dismissal of the more serious bank fraud and false statement charges, the remaining conspiracy charge would not adequately reflect the seriousness of Sotolongo’s actual offense behavior.”On Tuesday the fourth member of the ring — mortgage broker Christopher Mencis — pleaded guilty to his role in the scheme. The 52-year-old Mencis was initially charged with the same count of conspiracy as Sotolongo and with falsifying a loan application, a total of two charges. Under the Mencis plea negotiation though, Wilson agreed to drop the conspiracy charge and Mencis was then convicted of providing false statements to a financial institution after he entered his plea before Dalton. However Mencis, who has cooperated with prosecutors and FBI investigators, according to his attorney, faces a maximum prison sentence of 30 years.When Dalton asked Wilson to explain the reasoning behind the plea agreement offered to Sotolongo, Wilson said she opted for Sotolongo to admit to his involvement in all of the fraudulent transactions mentioned in the indictment, rather than an agreement that would render a longer potential prison term.The judge has ordered Sotolongo to return to his courtroom on Feb. 19 for a short hearing where Sotolongo will be expected to withdraw his plea. Dalton also said, “The parties shall be prepared to discuss Defendant’s options moving forward and to go to trial on March 17, 2014.”